1 / 9

By: Ronald F. White, Ph.D. Professor of Philosophy College of Mount St. Joseph

Corporations. By: Ronald F. White, Ph.D. Professor of Philosophy College of Mount St. Joseph. Introduction. Two Issues What is a corporation and what does a manager do? Descriptive scientific theories What is a “Good” corporation and what does a “Good” manager do?

mya
Download Presentation

By: Ronald F. White, Ph.D. Professor of Philosophy College of Mount St. Joseph

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Corporations By: Ronald F. White, Ph.D. Professor of Philosophy College of Mount St. Joseph

  2. Introduction • Two Issues • What is a corporation and what does a manager do? • Descriptive scientific theories • What is a “Good” corporation and what does a “Good” manager do? • Prescriptive moral theories

  3. Introduction • Questions about Corporations • Descriptive Scientific Theories- • What is a Corporation?” • Social science • Psychology, Sociology, Political Science, Economics • Biology • Evolutionary biology • Prescriptive Moral Theories- • What is a “good corporation?” • Teleological: “good consequences” • Deontological: “rights-based” • Virtue-Based: “human excellence”

  4. What is Business Ethics? • The Moral Landscape • Relationship between “Descriptive Facts” and “Prescriptive Values” • Moral Theory • Rights-Based (Enlightenment Deontology) • Consequentialism (Teleology: egoism, utilitarianism)) • Virtue-Based (Aristotelian/Judeo-Christian) • The “Is-Ought Gap?” • Descriptive Egoism and/or Altruism • Is there a naturalistic foundation for altruistic cooperative human behavior or is it solely the product of social learning? • Prescriptive Egoism and/or Altruism • Is altruistic cooperative human behavior “Good” and if so, “ought it be preserved and or cultivated? • Legality v. Morality • Liberal (Kant: “good citizen” vs. “good person”) • Communitarian (good citizen=good person) • Theory of the Firm • Nexus-of-Contracts Theory • Stockholder theory (Locke) • Stakeholder theory (Kant) • Agency Theory

  5. Nexus-of-Contracts Theory • Orthodoxy is business management and business ethics is currently occupied by a deontological “Nexus-of-Contracts Theory,” whereby: “Each constituency or stakeholder group bargains with the firm over a set of rights that will protect the firm specific assets that it makes available for production.” (Boatright p. 1837)

  6. Stockholder Management Theory • Human Nature • Individuals, Rationality, Self Interest, Free Will • Classical Liberalism (Locke-Nozick) • Life, Liberty, and Property • Persons/Property • Invisible Hand • Role of Government in Human Affairs • Natural and Artificial Monopolies • Obligations to Stockholders • Corporations as “Money Machines” • Agency Theory

  7. Stakeholder Management Theory • Human Nature • Individuals, Rationality, Self Interest, Free Will • Welfare Liberalism (Kant-Rawls) • Life, Liberty, and Property • Persons/Property • Invisible Hand • Role of Government in Human Affairs • Natural Advantage and Rights • Corporations as Persons • Stakeholders • Stockholders • Employees • Consumers • Society • Government

  8. Agency Theory • Machiavellian Background • Jensen and Meckling: “Theory of the Firm” (1976) • Conflict of interest between contracting parties • (shareholders, corporate managers, debt managers etc.) • Conceptual Framework- • Contractual Obligations • Trust • Principals (owners) • Agents (managers) • Behavior of Principles and Agents • Delegation of Authority from Principle to Agent • Incentives and Monitoring- • Problem of Self-Interest- • Agency and Moral hazard: Who bears cost? Who enjoys Benefits?

  9. Issues • Moral Relationships Between: • Corporate Agents and Stockholders • Corporations and Employees • Corporations and Society • Corporations and other Corporations • Corporations and Government • Regulation of Corporations • Competition • Morality • Utility • Beneficence • Non-Maleficence • Justice

More Related